Offer on a short sale from abroad - plausible or insane? (Gilbert: home, price)

[Zippyman]

Originally Posted by khuntrevor

people don't answer to strangers in some pretty nice areas.

If they're scared of opening the door, that isnt what I would call a nice area. I don't expect to be invited inside, (but it has happened), I'm not expecting to be their best friend, but it would be nice if they were not so socially hobbled that they can't tell me one of my shingles blew off the house, or they saw someone rummaging through my recycle bin.

[john3232]

Originally Posted by Zippyman

.... My current neighbor was overjoyed when we bought our current house, having a vacant house next door gave her the willies.

Isn`t this where the HOA comes in? (Assuming you have one.)

I pay a good $40-$55 a month in dues for my properties and if there is a problem with any of the neighbors I will bring it to the attention of the HOA.

[Zippyman]

Originally Posted by john3232

Isn`t this where the HOA comes in? (Assuming you have one.)

I pay a good $40-$55 a month in dues for my properties and if there is a problem with any of the neighbors I will bring it to the attention of the HOA.

And that's not the kind of neighbor i am, nor is it the kind of neighbor I want. Example - I was at my rental house last week, and there were several shingles in my lawn. I was worried, so I climbed on the roof & checked mine (they were all fine). Then I went to my neighbors house, and let him know that I found some shingles in my yard, and he ought to check his roof. It turns out he was missing some shingles. I loaned him my air compressor so he could fix his roof before work. No big deal, no hoa needed, and I don't expect anything in return.

The neighbor on the other side called me last month to let me know there was a strange pickup with a bunch of guys inside, sitting in my driveway..

It turns out it was my tile-setting guy, who showed up on the wrong day.

Just basic neighborliness, you don't need to pay $55 per month to get that...

Now, the neighbor down the street with the half-assembled project car in his driveway, doesn't get "neighborly" goodness, he's old enough to know that you can't park an unlicensed, half-assembled car in your driveway, so ill just report him to the city. Again, no hoa needed, it's against the law, and it doesn't cost $55 a month to take care of those issues either.

[Zippyman]

Originally Posted by tnp

Zippyman, what kind of questions do you ask the neighbors? That's what I want to do, but not sure how to break the ice and what to ask, as I'm pretty shy in person. Neighbor problems are my biggest concern when buying there, as the homes are so close together, so I'd like to get an idea of how the neighbors are.

Sorry I missed the first part of your question - when I knock on a neighbor's door, I say, "Hi, I'm Zippyman, and I'm thinking about buying the house next door, can you tell me about this neighborhood?".. Then, I just listen. That's really all most people need to hear & they'll tell you way more than any property disclosure statement ever does.

[john3232]

Originally Posted by Zippyman

...Just basic neighborliness, you don't need to pay $55 per month to get that...

Now, the neighbor down the street with the half-assembled project car in his driveway, doesn't get "neighborly" goodness, he's old enough to know that you can't park an unlicensed, half-assembled car in your driveway, so ill just report him to the city. Again, no hoa needed, it's against the law, and it doesn't cost $55 a month to take care of those issues either.

Unfortunately, it only takes one or two thoughtless homeowner to turn away potential renters/buyers. Sure phoning the police might save you money but I prefer that the problem either not be allowed or be promptly addressed.

My experience has been you simply can’t trust either renters or the people across the street to help maintain property values. I certainly don’t like forking over $400-$600 a year in HOA fees but if it helps ensure the neighborhood looks clean I’m all for it.

[themudpuppy]

Originally Posted by Zippyman

Sorry I missed the first part of your question - when I knock on a neighbor's door, I say, "Hi, I'm Zippyman, and I'm thinking about buying the house next door, can you tell me about this neighborhood?".. Then, I just listen. That's really all most people need to hear & they'll tell you way more than any property disclosure statement ever does.

Thanks, Zippyman.

[S. Chris Webb]

"I found it odd for example that after making strong bids on short-sale properties to rarely be asked for a counter offer."

In this market that is not uncommon at all. If a house is priced at or around market value, it will often receive multiple offers on the same day it is listed. Sellers don't need or want to send out counter offers, especially on a short sale. They pick the offer that appears most likely to be approved by the bank. That means that if someone offers 5K over list price, but there are any contingencies at all, such as must get financing, must meet appraisal, etc., another offer of all cash with no contingencies for list price would appear much stronger.

That said, there are certainly "side deals" going on in some cases. But the red flag isn't that sellers aren't countering.

[john3232]

Originally Posted by S. Chris Webb

"I found it odd for example that after making strong bids on short-sale properties to rarely be asked for a counter offer."

In this market that is not uncommon at all. If a house is priced at or around market value, it will often receive multiple offers on the same day it is listed. Sellers don't need or want to send out counter offers, especially on a short sale. They pick the offer that appears most likely to be approved by the bank. That means that if someone offers 5K over list price, but there are any contingencies at all, such as must get financing, must meet appraisal, etc., another offer of all cash with no contingencies for list price would appear much stronger.

That said, there are certainly "side deals" going on in some cases. But the red flag isn't that sellers aren't countering.

No but I do feel this did occur in several instances. I was offering cash and the stats. where I was looking (starting last summer) pointed to home closing between $3500 under or over the asking price. A 4 bed 2 bath in Gilbert at $130,000-135,000 was a great deal and it was here I would come up short even when offering $5000 over the asking price.

[ReadyFreddy]

"I found it odd for example that after making strong bids on short-sale properties to rarely be asked for a counter offer."

If it takes the bank 6 months to decide whether to accept a bid, how long would it take them if they tried to haggle with the bidders? I can't even imagine.

[john3232]

Originally Posted by ReadyFreddy

If it takes the bank 6 months to decide whether to accept a bid, how long would it take them if they tried to haggle with the bidders? I can't even imagine.

The stronger the offer the more likely the bank will accept the short-sale price.